Tishman Speyer restructured $1.4 billion in debt secured by five Downtown Chicago office properties. The restructuring agreement provides over $100 million for leasing commissions and tenant improvements. It also allows Tishman Speyer to directly invest $50 million into property upgrades. This enables Tishman Speyer to fulfill financial obligations and fund future leasing and building operations. Separately, McCaffrey Interests opened a new 198-unit apartment tower in River North with 40% of units already leased.

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June 7, 2010
Tishman Restructures
$1.4B Debt
Someone at Tishman Speyer must've been watching the right
infomercial: It reached an agreement with its lenders to restructure
$1.4B in debt secured by five Downtown Chicago office properties.
Ultimately that's good news for CBD tenants, CBRE SVP Kyle
Kamin tells us.
Here's why: The agreement calls for more than $100M to be available
for leasing commissions and TI, plus Tishman will make a direct
infusion of $50M in the properties, including One North Franklin, 161
N. Clark, 10 & 30 S. Wacker, 30 N. LaSalle and the Civic Opera
Building, above. "In a nutshell, it means that the largest landlord in
town has capital to offer tenants in an environment in which tenants
generally do not have it in their budgets for improvements to their
leased office space," says Kyle. The agreement enables Tishman to
fulfill all existing financial obligations and fund costs related to future
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2. leasing and operations. In 2008, Tishman's debt was taken over by
the Federal Reserve Bank of New York when Bear Stearns, the
original lender, collapsed. The maturity dates on the loans were also
extended from 2012 to 2014, as part of the restructuring.
McCaffrey Adds Flair
The downtown apartment stock in River North just got a little bigger
with the opening of Flair Tower at 222 W. Erie on Thursday.
McCaffrey Interests' Iris McCaffrey and Pamela Austin showed us
the lobby, which includes several art installations (the tower is part
of the second largest art district in the country). Pamela, the project
manager, tells us that 40% of the building's 198 units are leased. W.E.
O'Neil was the general contractor on the tower and Antunovich
Associates was the architect.
Amenities on the 6th floor include a fitness center, club room,
billiards room, and outdoor rooftop pool and hot tub. On the ground
level, 10k SF of retail space is ready for leasing. The tower has LEED
Silver cert, typically used to attract younger tenants but the company
hopes to draw a wide range.
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3. McCaffrey bought the site—a parking lot—more than two years ago
from a developer who was considering condos, but McCaffrey always
had apartments in mind, Pamela says. The building is one of only a
handful of new construction apartments coming online downtown
over the next two years. A bit of color: The McCaffrey's are Irish (stop
the presses, we know) and painted each apartment's front door a
different color, just like the streets of Dublin, very helpful for that first
week when you keep forgetting which apartment is yours.
WHY DO FIREMEN WEAR GREEN
SUSPENDERS?
To hold up their pants in a LEED Gold firehouse, of course.
Leopardo completed Mount Prospect’s new 23k SF fire station. The
two-story facility, which is seeking LEED Gold, features grey water
recycling, highly efficient HVAC systems, and plenty of natural
daylight to reduce energy requirements. The station’s apparatus
floor and living quarters are designed for future growth. Leopardo
served as the construction manager. SRBL was the architect.
Ideas for Bisnow? Contact Maureen Wilkey, maureen@bisnow.com.
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